TESTING, INSPECTION, AND CERTIFICATION (TIC) MARKET ANALYSIS

Global Testing, Inspection, and Certification (TIC) Market was valued at US$ 225.1 Billion in 2022, exhibiting a compound annual growth rate (CAGR) of 3.2% from 2023 to 2030.

The services provided by testing, inspection, and certification (TIC) include auditing, inspection, testing, verification, quality assurance, and certification of products, equipment, and more. By lowering risk, they assist in boosting production efficiency and lowering error. TIC services are useful in the oil and gas, food, pharmaceutical, chemical, and other industries.

Strict government regulations to ensure product safety and environmental protection, the need for interoperability testing due to the deployment of IoT, and the rising trade in substandard and counterfeit pharmaceutical products are some of the key factors influencing the growth of the TIC market. The increasing importance of food safety & hygiene as well as the rising focus on digitalization to improve customer experience will also contribute to the TIC market's growth in the near future.

Global Testing, Inspection, and Certification (TIC) Market - Regional Insights

North America is projected to hold the second-largest share of the overall global TIC market by 2030

The global testing, inspection, and certification (TIC) market is classified into North America, Europe, Asia Pacific, and the rest of the world. North America is expected to have the largest market share in testing, inspection, and certification. The market in North America has been further segmented into the US, Canada, and Mexico. The US is the leading consumer goods and retail product user, thereby driving the demand for testing, inspection, and certification services in the region. Also, it is the base of the world's leading companies across various verticals.

The large share of this regional market is mainly attributed to the presence of prominent TIC players and the emergence of various startups in the region, the growing demand for organic and processed foods, and the growing focus of organizations on meeting legal requirements and compliance regulations, early adoption of the latest technologies and government investment in technological advances. On the other hand, the Asia-Pacific region is projected to rise rapidly During the projection period, factors such as increasing demand for consumer electronics, increased consumer quality awareness, and an increasing number of TIC startups supported by government investment are expected to fuel the growth of the APAC market.

Figure 1. Global Testing, Inspection, and Certification (TIC) Market Share (%), By Region, 2022

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Global Testing, Inspection, and Certification (TIC) Market - Impact of Coronavirus (COVID-19) Pandemic

The outbreak of COVID-19 has significantly affected the electronics and semiconductor sector. Business and manufacturing units across various countries were closed, owing to increase in number of COVID-19 cases, and are expected to remain closed in 2021. Furthermore, partial or complete lockdown has disrupted global supply chain posing challenges for manufactures to reach customers.

The COVID-19 pandemic is impacting the society and overall economy across the globe. The impact of this outbreak is growing day-by-day as well as affecting the overall business globally. The crisis is creating uncertainty in the stock market and is resulting in falling business confidence, massive slowing of supply chain, and increasing panic among customers. Asian and European countries under lockdowns have suffered major loss of business and revenue, owing to shutdown of manufacturing units. Operations of the production and manufacturing industries have been heavily impacted by the outbreak of the COVID-19 disease, which further impacted growth of the testing, inspection and certification market growth.

In addition, the COVID-19 pandemic has impacted the electronics sector as production facilities have stalled, which, in turn, boost demand for electronics and semiconductor products in these industries.

Global Testing, Inspection, and Certification (TIC) Market – Drivers

Increasing trade in counterfeit & defective pharmaceutical products

Sales of counterfeit and pirated goods have increased significantly on a global scale. Numerous industries, including consumer electronics, medical technology, and aerospace, are known to engage in these unethical practices. Given the large profit margins, low chances of being discovered and prosecuted, lax penalties, and ease with which consumers can be duped into thinking the counterfeit goods are authentic, the illicit markets for fake pharmaceuticals are alluring to counterfeiters. Due to dishonest practices and insufficient quality control procedures (such as testing, inspection, and certification during manufacturing), subpar drugs are available on the market. Through all of these initiatives, testing, inspection, and certification stakeholders can help drug manufacturing companies meet quality requirements and national standards. Before manufactured goods are sold, testing, inspection, and certification service providers examine, judge, and approve them.

Global Testing, Inspection, and Certification (TIC) Market – Opportunities

Growing adoption of AI and ML worldwide

Technology is transforming across domains at an unprecedented rate. Major technological advances are observed in the healthcare industry. The ability to capture data from wearable devices, such as smartwatches, will make it possible to predict and treat health issues in people even before they experience any symptoms. When it comes to treatment, personalized approaches can be anticipated. This is also called precision medicine, which allows doctors to prescribe medicines and give treatments to their patients more precisely. Owing to innovations in genomics and AI, such technological advances help understand the difference between patients' reactions to different medications or treatments.

Global Testing, Inspection, and Certification (TIC) Market – Trends

The global Testing, Inspection, and Certification (TIC) market is a rapidly evolving industry that plays a crucial role in ensuring the quality, safety, and compliance of products, services, and systems across various sectors. Here are some of the key trends shaping the TIC market:

Growing Emphasis on Quality and Safety

Consumers are becoming more conscious about product quality, safety, and sustainability. They expect assurance that the products they purchase meet the required standards. TIC services enable businesses to validate the quality, safety, and sustainability of their products, thereby building consumer trust and enhancing brand reputation. For Instance, SGS S.A. (Switzerland), Intertek Group plc (UK), and Bureau Veritas (France) are focusing on adopting digital technology to boost market growth. Companies in the TIC sector also focus on ensuring the security, performance, and safety of products, processes, and services.

Global Testing, Inspection, and Certification (TIC) Market – Restraints

High Costs

Testing, inspection, and certification services can be costly, especially for small and medium-sized enterprises (SMEs) or businesses operating in emerging economies. The expenses associated with obtaining certifications and conducting regular inspections can strain the financial resources of these organizations, limiting their ability to invest in TIC services.

Complex Regulatory Environment

Different countries and regions have their own regulatory frameworks and standards, which can vary significantly. This complex regulatory environment can pose challenges for TIC providers, as they need to navigate and comply with multiple sets of regulations. Adapting to the ever-changing regulatory landscape requires significant expertise, resources, and coordination, which can be a constraint for TIC companies.

Figure 2. Global Testing, Inspection, and Certification (TIC) Market Share (%), By Segment, 2022  

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Global Testing, Inspection, and Certification (TIC) Market - Segmentation

Global Testing, Inspection, and Certification (TIC) Market report is segmented into Type, Vertical, and region

Based on Type, the market is segmented into Management Systems Certification, Third-Party Inspection, ASME, Others

Based on Vertical, the market is segmented into Oil and Gas, Chemicals, Life Sciences, Power & Utilities, Food, Beverages, and Agriculture Transportation, Automotive & Aerospace, Consumer Products and Goods, Construction, Metals and Minerals, Industrial Goods.

Global Testing, Inspection, and Certification (TIC) Market: Key Developments

1. In January 2022, SGS announced its partnership with Microsoft. The new collaboration will enable the company to develop and innovate data, IoT, and AI-based TIC services that are sustainable and inclusive and can help its customers realize their full potential.
2. In April 2021, Intertek Group was selected as an accredited testing laboratory under the US Food and Drug Administration’s (FDA) Accreditation Scheme for Conformity Assessment (ASCA) Pilot Program. With this recognition, 12 Medical Centers of Excellence within Intertek’s global network of labs have been authorized to assist manufacturers worldwide with medical device premarket testing.
3. In January 2023, SGS partnered with the Fairness, Integrity, Safety, And Health (FISH) Standard for Crew (US), offering a voluntary, impartial, and recognized third-party certification scheme for labor practices. These labor practices are meant for board vessels engaged in global wild-capture fisheries to award FISH certification to Phoenix Processors Limited Partnership (PPLP) for two processor vessels: M/V Excellence and M/V Phoenix.
4. In December 2022, ALS Limited (ALS) acquired the ExplorTech Division of Earthlabs Inc., formerly GoldSpot Discoveries Corp. (Canada), to deliver discovery-vectoring consulting services to clients. GoldSpot Discoveries Corp. is recognized as a global leader in AI and data science, using AI to transform the mineral discovery process.
5. In December 2022, UL Solutions launched the SPIRE Qualification Program to meet the smart building assessment and verification demand. UL Solutions' SPIRE Qualification Program enables qualified third-party assessors to conduct SPIRE Smart Building Assessments and gain insights from UL Solutions smart building experts.
6. In November 2022, TÜV Rheinland introduced a test standard (2 PfG 2796/02.22) to certify solar modules installed into unique buildings worldwide.

Global Testing, Inspection, and Certification (TIC) Market: Key Companies Insights

Key players operating in the Global Testing, Inspection, and Certification (TIC) Market are SGS Group, Bureau Veritas SA, TUV Rheinland Group, Intertek Group PLC, ALS Limited, DNV GL, MISTRAS, Lloyd’s Register Group Limited, Underwriters Laboratories Inc., ABS Group, and ASTM International.

*Definition: TIC represents the Testing, Inspection and Certification sector. The independent TIC sector provides conformity assessment services (i.e. testing, validation, declaration of conformity, etc.), either for regulatory reasons or good practice, in order to protect people and the environment.